NV Energy Inc. ( NVE - Snapshot Report ) has been paying dividends to shareholders for the last five years and currently pays a yield of 3.8%. Also, earnings momentum for this energy company has been in an uptrend since it reported strong second quarter 2012 results, which included a 61.1% earnings surprise.

In May 2012, the company increased its quarterly dividend rate by 31%, thanks to higher returns from its Harry Allen generating station. Strong fundamentals and an attractive dividend yield make this Zacks #2 Rank (Buy) stock attractive for growth seeking investors.

Mixed Quarter

On July 27, 2012, NV Energy Inc. reported second quarter earnings of 29 cents per share, way above last year’s 5 cents and 61.1% higher than the Zacks Consensus Estimate of 18 cents.

Revenues increased 9.8% to $740.7 million but marginally fell short of the Zacks Consensus Estimate of $748 million.

NV Energy Inc. expects earnings per share for 2012 between $1.15 and $1.25.

Earnings Estimates Move Up

The past 30 days have seen four of nine estimates for 2012 advance, pushing the Zacks Consensus Estimate higher by 2.5% to $1.23 per share. This reflects an estimated year-over-year growth of 66.1%.

For 2013, the Zacks Consensus Estimate has inched up by a penny to $1.26 per share. This reflects an estimated year-over-year growth of 2.2%.

Stable Dividend

NV Energy has been paying dividends to its shareholders ever since the second quarter of 2007. The present quarterly dividend rate of 17 cents reflects growth of 112.5% from the 2007 level. The current annualized rate of 68 cents per share culminates in a dividend yield of 3.8%.

Reasonable Valuation

Shares of NV Energy Inc. are trading roughly 14.6x the full year 2012 estimate with the PEG ratio at 0.78. The price-to-book is at 1.24x, a 20.0% discount to the peer group average of 1.55x. Also, on a price-to-sales basis, shares trade at 1.42x, a 2.1% discount to the peer group average of 1.45x.

The company has a trailing 12-month ROE of 7.1% compared with the peer group average of 8.3%.

Given the double-digit earnings growth prospect in the current year, the valuation presents a window of opportunity for investors seeking both growth and income.

Based in Las Vegas, Nevada, NV Energy, Inc. was founded in 1906. This energy company primarily generates electricity from fossil fuel and has a generation capacity of 5,862 megawatts from its 63 generating units. The company has a market capital of $4.22 billion and 2,811 employees. NV Energy competes with Avista Corp. (AVA), among others.